After recording an increase in May, monthly house prices fell by -0.6% in June, according to the later house price index from Halifax.
This was the fourth monthly price fall since last December.
House prices in the latest three months (April-June 2014) were 2.3% higher than in the preceding three months (January-March 2014). House price change on this measure has now remained steady in a narrow range of 2.0% – 2.3% since June 2013.
Prices in the three months to June were 8.8% higher than in the same three months a year earlier. This was marginally higher than in May (8.7%).
Stephen Noakes, Halifax’s mortgages director, said: “Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence, although real earnings growth remains sluggish.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Halifax reports that house prices dipped in June but on the more reliable three-month average they rose by 2.3%. With estate agents reporting that applicant levels are falling, fewer sealed bids and packed open houses, some moderation is returning to the market. As more property comes up for sale, with vendors worrying that they may have missed the boat, the heat has come out of the housing market.
“The threat of an interest rate rise is there in the background, influencing people’s willingness to take on more debt. Fixed-rate mortgages are still cheap however, although they are edging up slightly. The mortgage market review is having an impact and slowing things down although we expect this to be temporary as lenders get to grips with the new regime.”
